Groupe Renault unveiled its new strategy for the Chinese market, building on two of its key pillars: Electric Vehicles (EV) and Light Commercial Vehicles (LCV).
The LCV market in China
The LCV market is rapidly changing due to increasing urbanisation, the growth of e-commerce, inner-city transportation schemes and versatile needs of customers. It reached 3.3 million in 2019 and is forecasted to steadily increase.
Groupe Renault is leading the LCV market in Europe in terms of sales volumes for light commercial vehicles, as well as sales of electric light commercial vehicles. Renault Brilliance Jinbei Automotive Co., Ltd. (RBJAC), launched in December 2017, is Groupe Renault’s production facility for its LCV business in China. Jinbei is a well-established Brand with 1.5 million customers in China and close to 162,000 sales in 2019. With Renault expertise and technologies, RBJAC is modernizing Jinbei models and extending the line-up with a total of five core models by 2023. The joint venture will also export vehicles to other markets in the future.
The EV market in China
With 860,000 electric vehicles sold in China in 2019, China is by far the largest EV market in the world. EV sales are expected to reach 25% of the Chinese market by 2030.
Groupe Renault is a pioneer of EV and has sold close to 270,000 electric vehicles globally since 2011. China has a strong competitive advantage as shown by the successful launch of Renault City K-ZE, the first joint venture EV car competing in A segment with the best local automakers.
Groupe Renault expect to reinforce its partnership with Nissan and Dongfeng within eGT to make K-ZE a worldwide car. A derivative for Europe based on “Dacia Spring” concept will be sold from 2021.
JMEV is known as an agile and efficient EV player since its creation in 2015. With Renault support in terms of quality and technologies, JMEV will cover 45% of Chinese EV market in 2022 with four core models.
The ICE passenger car market in China
Groupe Renault has entered into a preliminary agreement with Dongfeng Motor Corporation under which Renault transfers its shares to Dongfeng. DRAC will stop its Renault brand-related activities but Renault will continue to provide high quality aftersales service for its 300,000 customers through Renault dealers but also through Alliance synergies.
Further developments for Renault passenger cars will be detailed in the new mid-term-plan. Renault and Dongfeng will continue to cooperate with Nissan on new generation engines like components supply to DRAC and diesel license to Dongfeng Automobile Co., Ltd. Renault and Dongfeng will also engage in innovative cooperation in the field of intelligent connected vehicles.
“We are opening a new chapter in China. We will concentrate on electric vehicles and light commercial vehicles, the two main drivers for future clean mobility and more efficiently leverage our relationship with Nissan” said Francois Provost, Chairman of China region of Groupe Renault.
This new strategy for China will enhance Renault’s competitive advantages to sustain long-term presence in the Chinese market and maximize synergies with Nissan under the new Alliance concept of “leader-follower”.